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Report: ML Strategy
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You will be able to download all slides in power point for this report
and all data is available excel
Broad sector buy intact based
Economies going back to normal
Some sectors missed a quarter of earnings
Missed earnings imply either shrinking equity or larger debt depending on fixed costs
In either way missed earnings imply higher debt to equity ratio
Missed earning in some cases imply dilution of current shareholders
Because debt is cheaper for companies in the current environment this means a lower WACC
Lower WACC could imply higher valuation for companies which managed not to increase their net debt
This supports a broad sector buy, buybacks and larger dividends for existing key shareholder to reinvest
On the negative side demand is weaker
Revenues are likely to be lower in the second half of 2020
Incomes lower
Multiples higher across the markets
Higher Debt EBITDA ratio
Covenants under pressure
Deleveraging
Cost cuts
Lower capex
and on balance probably lower cashflows
Rural Investment Banking
Coworking
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Get to know rural tunes .